EU rules on distance marketing of financial services

European rules on distance marketing of financial services protect consumers when they sign a contract with a retail financial services provider (hereinafter “providers”) in another EU country.

The rules provide the following rights

  • consumers must receive comprehensive information from the providers before a contract is concluded

  • consumers can withdraw from the contract during a cooling-off period

  • providers must not use abusive marketing practices seeking to oblige consumers to buy a service they have not solicited, known as inertia selling

  • providers must not use practices such as unsolicited phone calls and e-mails, known as cold calling and spamming